trading capital

Trading is one of the most lucrative businesses in today's world. Those who have proper knowledge about the financial market are quickly making huge money by trading live assets. However, mastering the art of trading is not so easy. You have to develop your mentality and start embracing the losing trades regularly. Most importantly, you must have a balanced trading strategy to trade the live asset. Let's imagine you know all the details of this market. So how much money can you make in this market? Or, how much money do the professional traders make? To be honest, there is no exact answer to this question. We will highlight some critical information regarding the profit factors in the trading business.

Size of your trading capital

The first thing you can consider when finding the profit factors of a successful trader is the size of their account balance. A trader trading the market with $1000 will make a minimal profit compared to a trader who has $100k in their account. When it comes to a percentage, earning 2-5% per month is an excellent gain. Some of you might make more than 10% monthly, but it's only because you have a small trading account. Never expect to earn such an amount when you start to trade the market with significant trading capital. With a more considerable investment comes a more substantial risk.

Skills of the traders

Experienced traders in Hong Kong prefer to buy stocks with Saxo based on simple logic. They never make things complex in the trading business. Success lies within simplicity. You can't analyze all the critical variables in the market at an extreme level of volatility. For instance, those who trade the news often have to execute a trade based on logic. Do you think they can assess all the factors before their trade execution? The simple answer is no. But this doesn't mean they risk more than 1% of their account balance. Losing or winning is entirely unpredictable. Once you start following the rules of investment, you can easily make a 5-10% monthly gain. To be precise, the amount of money you will make will greatly depend on your skills. A skilled trader is likely to make more money than a newcomer.

Preferred trading strategy

Profit factors in the trading business greatly depend on the trader's strategy. A position trader will most likely make less money than a professional scalper. They also take less risk in each trade, which makes trading much more accessible. On the other hand, professional scalpers are taking 3-5% risk in each trade to make a decent profit from this market. They also trade the market with a low-risk-reward ratio, complicating things. This will never be a problem for traders with a high win rate. So, if your trading strategy can win more trades, you will most likely make a considerable amount of money by scalping the market.

Leverage used by the trader

Leverage is a double-edged sword. It gives retail traders the power to buy. You can quickly execute big trades to make more money, even with a small trading account. However, experienced traders suggest that rookie traders trade with a low-leverage trading account. Never take unnecessary risks to make more money from this market. Try to follow the conservative trading technique to change your life.

By now, you should clearly know the factors determining profit. You can change your trading strategy based on your needs to maximize your profit. But regardless of your trading strategy, never risk any amount you can’t afford to lose. You cannot be within your comfort zone to become a better trader.